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ACIT (OSD), Cir-8, Ahmedabad Vs Symphony Comfort System Ltd.

5. On ground No.2 of the appeal, the revenue challenged the deletion of addition of Rs.45,19,044/- on account of excessive expenses. During the assessment proceedings the AO found that the turnover of the assessee has decreased as compared to the preceding year, however, indirect expenses were on the higher side. It was submitted that all the expenses were incurred for the purpose of business. The AO did not accept the contention of the assessee and by comparing the expenses from the preceding assessment year noted that the expenses claimed in the year under consideration are higher as it is at 1.89%. Therefore, addition was made by disallowing the expenses. The learned CIT(A) noted that the addition is made without any reasons and without pointing out any expenditure to be bogus and non-genuine. Addition was accordingly deleted.